Weekly Information on Banking Activities (May 7-13, 09)

The weekly information on banking activities (May 7-13, 2009) is as follows:

1. The money market remained stable. Several joint-stock commercial banks increased their VND mobilizing interest rates from 0.2%p.a to 0.7% p.a. for the terms of above 12 months.

The mobilization interest rate in USD offered by commercial banks slightly reduced between 0.1%-0.25% p.a. in comparison with the previous week.

By May 15, 2009, the rates were quoted as follows:

- The lending rates in VND of the group of state-owned commercial banks remained unchanged in comparison with the previous week, the rates were commonly qouted at 8.5%-10% p.a. for short-term loans and 10%-10.5% p.a. for the medium and long-term loans. The common lending rates in VND of the group of joint-stock commercial banks remained stable,  commonly at 10% - 10.5% p.a. The lending interest rate after deducting the amount of interest rate support were from 4.5% to 6% p.a.

- The lending rate in USD ranged between 6%-7% p.a.

- The negotiable lending rates applicable for  consumer demand and credit card loans were commonly at 12% - 15% p.a

2. According to the express reports of credit institutions, by May 12, 2009, the average interest rates in VND in the inter-bank market tended to increase slightly, excluding the overnight rate and 12 month rate which slightly decreased. However, the rise was not significant, particularly the highest increase was 0.25% p.a. for the term of 6 months. The overnight rate reduced to 6.09% p.a., and the other rates ranged between 7.0%-8.40% p.a.

The average interest rates in USD were on upward trend for the terms of 1 week, 1 month and 6 months;  the rates for other terms slightly decreased as compared to the previous week. The highest rate in USD was 2.75% p.a. for 6 month loan and the other rates fluctuated between 0.5%-2.2% p.a.

The average interest rates in the inter-bank market were as follows (% p.a):

3. During the week, commercial banks quoted the selling VND/USD exchange rate closely to the ceiling rate set by the SBV. Commercial banks commonly offered their selling VND/USD exchange rate at 17,784-17,787 VND/USD.

4. SBV Management Board’s activities

- Deputy Governor Nguyen Dong Tien, on May 14, 2009, attended a conference named “ Branding for Banking and Finance Vietnam 2009”. The conference was co-organized by the SBV, the Bac Ha Group and the Pham and Le Communication Joint-Stock Company.

- Deputy Governor Nguyen Van Binh, on May 15, met with the group of supervising financial projects of the World Bank.

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